FORT WAYNE,
Ind., July 23, 2018
/PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) today
announced second quarter 2018 financial results. The company
reported second quarter 2018 net sales of $3.1 billion and net income of $362 million, or $1.53 per diluted share. Comparatively,
prior year second quarter net income was $154 million, or $0.63 per diluted share, with net sales of
$2.4 billion. Sequential first
quarter 2018 net income was $228
million, or $0.96 per diluted
share, with net sales of $2.6
billion.
"The team performed exceptionally well during the
quarter," said Mark D. Millett,
President and Chief Executive Officer. "Our second quarter
2018 income from operations increased 55 percent sequentially to a
record $502 million, and adjusted
EBITDA increased to a record $590
million. During the second quarter, we saw improved
demand and product pricing across the entire steel platform,
resulting in record quarterly steel shipments and significant
margin expansion. While we saw improvement from each of our steel
divisions, the increase in earnings was principally driven by our
flat roll operations, as continued strong demand supported
meaningful volume and margin expansion. Domestic steel demand
remained strong from the automotive, construction, and energy
sectors, while general industrial demand continued to
grow.
"The metals recycling platform also performed well, with
strong shipments and continued steady operating costs;
although, higher unprocessed scrap procurement costs offset
some of these benefits," continued Millett. "As we suggested
on the first quarter earnings call, our fabrication platform
earnings were negatively impacted in the second quarter, as a
result of higher average steel input costs, as steel prices
continued to increase throughout the quarter. However,
fabrication demand is strong, and our customer base continues to be
optimistic concerning project development throughout the second
half of the year.
"I also want to again welcome the Heartland team and
customers into our SDI family," said Millett. "We successfully
completed the acquisition of the Heartland steel finishing assets
located in Terre Haute, Indiana on
June 29, 2018. We are excited
about the opportunities that Heartland, together with our Midwest
flat roll operations, provides us. The acquisition levers our core
strengths and further increases our value-added product and market
diversification."
Second Quarter 2018 Comments
Second quarter 2018 operating income for the company's
steel operations increased 59 percent sequentially to a record
$537 million, based on an eight
percent increase in shipments and metal spread expansion, as
average steel product pricing increased more than consumed raw
material scrap costs. The second quarter 2018 average product
selling price for the company's steel operations increased
$110 to $932 per ton. The average ferrous scrap
cost per ton melted increased $27 to
$348 per ton.
Second quarter 2018 operating income attributable to the
company's flat roll steel operations increased 67 percent
sequentially, driven by metal spread expansion related to continued
strong underlying demand, higher selling values and a five percent
increase in shipments. Operating income from the company's long
product steel operations increased 36 percent, as a result of
improved shipments and metal spread expansion, primarily from the
company's Structural and Rail Division. The company's steel
production utilization rate was 99 percent in the second quarter
2018, compared to 94 percent in the sequential first quarter and 91
percent in the second quarter of
2017.
Second quarter 2018 operating income from the company's
metals recycling operations was $26
million, compared to $28
million in the sequential first quarter. Higher
procurement costs offset a seven percent increase in recycled
ferrous shipments, resulting from strong domestic steel mill
demand.
The company's fabrication operations recorded second
quarter 2018 operating income of $14
million, compared to sequential first quarter results of
$20 million, as improved average
selling values and higher shipments were more than offset by higher
steel input costs.
Year-to-Date June 30,
2018 Comparison
For the six months ended June 30,
2018, net income was $590
million, or $2.49 per diluted
share, on net sales of $5.7 billion,
as compared to net income of $355
million, or $1.46 per diluted
share, on net sales of $4.8 billion
for the same period in 2017. First half 2018 net sales
increased across all operating platforms, with the 20 percent
improvement driven by higher average steel product pricing and
record steel shipments. First half 2018 operating income
increased 38 percent to $825 million,
based on improved earnings from the company's steel operations. The
average year-to-date selling price for the company's steel
operations increased $118 to
$879 per ton. The average
year-to-date ferrous scrap cost per ton melted increased
$51 to $334 per ton.
During the first half of 2018, the company generated
strong cash flow from operations of $504
million and maintained liquidity of $2.0 billion at June
30, 2018. On June 29,
2018, the company used available cash of $396 million to fund the acquisition of
Heartland. The company also repurchased $118 million of its common stock during the first
half of 2018.
Outlook
"We remain confident that macroeconomic and
market conditions are in place to benefit domestic steel
consumption," said Millett. "Based on strong
domestic steel demand fundamentals and customer optimism, we
believe steel consumption will continue to be strong for the
remainder of the year. Domestic steel inventory levels also
remain reasonably balanced. In combination with our expansion
initiatives, we believe there are firm drivers for our continued
growth. We are excited about Heartland and our recently
announced expansion plans at the Columbus Flat Roll Division.
These actions represent a few steps in the continuation of our
growth initiatives, to further increase value-added products and
market diversification.
"As it relates to Heartland, we believe this acquisition
will result in numerous future earnings benefits both to
Heartland's current operations and to our broader Midwest flat roll
operations. In combination, Heartland brings a tremendous
amount of operating flexibility and optionality ultimately
providing recurring synergies. We are integrating Heartland
into our Midwest flat roll operations, and plan to focus our
value-added, lighter gauge flat roll production at Heartland, which
while increasing profitability will likely result in less than
nameplate cold mill volume at Heartland. We currently plan to
increase production during the second half of 2018 to approximately
40,000 tons per month, with the expectation to reach an annual
run-rate of between 800,000 tons and 900,000 tons of cold roll,
pickled and oiled, and galvanized flat roll steel by mid-year
2019. Based on our current purchase price allocation
estimates, we currently expect third quarter 2018 earnings
contribution from Heartland to be reduced by approximately
$12 million to $15 million (pre-tax), due to fair value
accounting adjustments. On a through-cycle basis, we believe
the increased benefit of the Heartland acquisition will ultimately
improve our through-cycle EBITDA between $50
million and $60 million per
year.
"We continue to strengthen our financial
position through strong cash flow generation and the execution of
our long-term strategy. We are well-positioned for growth, and
remain focused on delivering shareholder value through organic and
transactional growth opportunities," concluded Millett.
Conference Call and Webcast
Steel Dynamics, Inc. will hold a conference call to
discuss second quarter 2018 operating and financial results on
Tuesday, July 24, 2018, at 10:00
a.m. Eastern Time. You may access the call and find
dial-in information on the Investors section of the company's
website at www.steeldynamics.com. A replay of the call will
be available on our website until 11:59 p.m. Eastern Time on
July 29, 2018.
About Steel Dynamics, Inc.
Steel Dynamics is one of the largest domestic steel
producers and metals recyclers in the
United States based on estimated annual steelmaking and
metals recycling capability, with facilities located throughout
the United States, and in
Mexico. Steel Dynamics produces steel products, including hot
roll, cold roll, and coated sheet steel, structural steel beams and
shapes, rail, engineered special-bar-quality steel, cold finished
steel, merchant bar products, specialty steel sections and steel
joists and deck. In addition, the company produces liquid pig
iron and processes and sells ferrous and nonferrous
scrap.
Note Regarding Non-GAAP Financial
Measures
The company reports its financial results in accordance
with U.S. generally accepted accounting principles (GAAP).
Management believes that Adjusted Net Income, Adjusted Diluted
Earnings Per Share, EBITDA and Adjusted EBITDA, non-GAAP financial
measures, provide additional meaningful information regarding the
company's performance and financial strength. Non-GAAP financial
measures should be viewed in addition to, and not as an alternative
for, the company's reported results prepared in accordance with
GAAP. In addition, because not all companies use identical
calculations, EBITDA and Adjusted EBITDA included in this release
may not be comparable to similarly titled measures of other
companies.
Forward-Looking Statements
This press release contains some predictive statements
about future events, including statements related to conditions in
the steel and metallic scrap markets, Steel Dynamics' revenues,
costs of purchased materials, future profitability and earnings,
and the operation of new or existing facilities. These statements,
which we generally precede or accompany by such typical conditional
words as "anticipate," "intend," "believe," "estimate," "plan,"
"seek," "project" or "expect," or by the words "may," "will," or
"should," are intended to be made as "forward-looking," subject to
many risks and uncertainties, within the safe harbor protections of
the Private Securities Litigation Reform Act of 1995. These
statements speak only as of this date and are based upon
information and assumptions, which we consider reasonable as of
this date, concerning our businesses and the environments in which
they operate. Such predictive statements are not guarantees of
future performance, and we undertake no duty to update or revise
any such statements. Some factors that could cause such
forward-looking statements to turn out differently than anticipated
include: (1) the effects of uncertain economic conditions;
(2) cyclical and changing industrial demand; (3) changes
in conditions in any of the steel or scrap-consuming sectors of the
economy which affect demand for our products, including the
strength of the non-residential and residential construction,
automotive, manufacturing, appliance, pipe and tube, and other
steel-consuming industries; (4) fluctuation in the cost of key
raw materials and supplies (including steel scrap, iron units, and
energy costs) and our ability to pass on any cost increases; (5)
the impact of domestic and foreign import price competition;
(6) unanticipated difficulties in integrating or starting up
new or acquired businesses; (7) risks and uncertainties
involving product and/or technology development; and
(8) occurrences of unexpected plant outages or equipment
failures.
More specifically, we refer you to Steel Dynamics' more
detailed explanation of these and other factors and risks that
may cause such predictive statements to turn out differently, as
set forth in our most recent Annual Report on Form 10-K under
the headings Special Note Regarding Forward-Looking
Statements and Risk Factors, in our quarterly reports on
Form 10-Q or in other reports which we from time to time file
with the Securities and Exchange Commission. These are available
publicly on the SEC website, www.sec.gov, and on the Steel Dynamics
website, www.steeldynamics.com: Investors: SEC Filings.
Steel Dynamics, Inc.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(in thousands, except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
Three Months
|
|
June 30,
|
|
June 30,
|
|
Ended
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
3,090,525
|
|
$
|
2,390,720
|
|
$
|
5,694,400
|
|
$
|
4,758,936
|
|
$
|
2,603,875
|
Costs of goods
sold
|
|
2,438,443
|
|
|
1,998,202
|
|
|
4,578,902
|
|
|
3,894,264
|
|
|
2,140,459
|
Gross
profit
|
|
652,082
|
|
|
392,518
|
|
|
1,115,498
|
|
|
864,672
|
|
|
463,416
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
101,031
|
|
|
98,433
|
|
|
207,462
|
|
|
201,366
|
|
|
106,431
|
Profit
sharing
|
|
42,335
|
|
|
21,308
|
|
|
68,997
|
|
|
48,539
|
|
|
26,662
|
Amortization of
intangible assets
|
|
6,829
|
|
|
7,424
|
|
|
13,755
|
|
|
14,848
|
|
|
6,926
|
Operating
income
|
|
501,887
|
|
|
265,353
|
|
|
825,284
|
|
|
599,919
|
|
|
323,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of capitalized interest
|
|
31,512
|
|
|
33,869
|
|
|
63,408
|
|
|
67,842
|
|
|
31,896
|
Other expense
(income), net
|
|
(5,035)
|
|
|
(3,835)
|
|
|
(9,498)
|
|
|
(7,494)
|
|
|
(4,463)
|
Income before income
taxes
|
|
475,410
|
|
|
235,319
|
|
|
771,374
|
|
|
539,571
|
|
|
295,964
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
112,838
|
|
|
82,372
|
|
|
183,327
|
|
|
187,958
|
|
|
70,489
|
Net
income
|
|
362,572
|
|
|
152,947
|
|
|
588,047
|
|
|
351,613
|
|
|
225,475
|
Net (income) loss
attributable to noncontrolling interests
|
|
(123)
|
|
|
986
|
|
|
1,953
|
|
|
3,137
|
|
|
2,076
|
Net income
attributable to Steel Dynamics, Inc.
|
$
|
362,449
|
|
$
|
153,933
|
|
$
|
590,000
|
|
$
|
354,750
|
|
$
|
227,551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share attributable
to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Dynamics, Inc.
stockholders
|
$
|
1.54
|
|
$
|
0.64
|
|
$
|
2.50
|
|
$
|
1.47
|
|
$
|
0.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
235,617
|
|
|
241,343
|
|
|
236,120
|
|
|
242,143
|
|
|
236,623
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable
to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Dynamics, Inc. stockholders,
including the effect
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of assumed conversions when
dilutive
|
$
|
1.53
|
|
$
|
0.63
|
|
$
|
2.49
|
|
$
|
1.46
|
|
$
|
0.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and
share equivalents outstanding
|
|
236,945
|
|
|
243,021
|
|
|
237,334
|
|
|
243,784
|
|
|
237,723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per share
|
$
|
0.1875
|
|
$
|
0.1550
|
|
$
|
0.3750
|
|
$
|
0.3100
|
|
$
|
0.1875
|
Steel Dynamics, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands)
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
December 31,
|
Assets
|
2018
|
|
|
2017
|
|
(unaudited)
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and
equivalents
|
$
|
720,445
|
|
|
$
|
1,028,649
|
Short
term investments
|
|
90,000
|
|
|
|
-
|
Accounts
receivable, net
|
|
1,180,183
|
|
|
|
868,837
|
Inventories
|
|
1,787,109
|
|
|
|
1,519,347
|
Other
current assets
|
|
39,927
|
|
|
|
91,509
|
Total current
assets
|
|
3,817,664
|
|
|
|
3,508,342
|
|
|
|
|
|
|
|
Property, plant and equipment,
net
|
|
2,909,033
|
|
|
|
2,675,904
|
|
|
|
|
|
|
|
Intangible assets, net
|
|
243,154
|
|
|
|
256,909
|
|
|
|
|
|
|
|
Goodwill
|
|
508,275
|
|
|
|
386,893
|
|
|
|
|
|
|
|
Other assets
|
|
26,395
|
|
|
|
27,684
|
Total
assets
|
$
|
7,504,521
|
|
|
$
|
6,855,732
|
Liabilities and Equity
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Accounts
payable
|
$
|
675,801
|
|
|
$
|
489,448
|
Income
taxes payable
|
|
38,273
|
|
|
|
3,696
|
Accrued
expenses
|
|
326,246
|
|
|
|
346,580
|
Current
maturities of long-term debt
|
|
18,266
|
|
|
|
28,795
|
Total current
liabilities
|
|
1,058,586
|
|
|
|
868,519
|
|
|
|
|
|
|
|
Long-term debt
|
|
2,352,127
|
|
|
|
2,353,145
|
|
|
|
|
|
|
|
Deferred income taxes
|
|
375,719
|
|
|
|
305,949
|
|
|
|
|
|
|
|
Other liabilities
|
|
18,330
|
|
|
|
21,811
|
Total
liabilities
|
|
3,804,762
|
|
|
|
3,549,424
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable noncontrolling
interests
|
|
111,240
|
|
|
|
111,240
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Common
stock
|
|
644
|
|
|
|
644
|
Treasury
stock, at cost
|
|
(779,088)
|
|
|
|
(665,297)
|
Additional paid-in capital
|
|
1,149,367
|
|
|
|
1,141,534
|
Retained
earnings
|
|
3,376,163
|
|
|
|
2,874,693
|
Accumulated other comprehensive loss
|
|
(105)
|
|
|
|
-
|
Total Steel Dynamics,
Inc. equity
|
|
3,746,981
|
|
|
|
3,351,574
|
Noncontrolling interests
|
|
(158,462)
|
|
|
|
(156,506)
|
Total
equity
|
|
3,588,519
|
|
|
|
3,195,068
|
Total liabilities and
equity
|
$
|
7,504,521
|
|
|
$
|
6,855,732
|
Steel Dynamics, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
June 30,
|
|
June 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
362,572
|
|
$
|
152,947
|
|
$
|
588,047
|
|
$
|
351,613
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided
by
|
|
|
|
|
|
|
|
|
|
|
|
operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
79,120
|
|
|
73,801
|
|
|
155,255
|
|
|
148,858
|
Equity-based
compensation
|
|
8,041
|
|
|
6,380
|
|
|
20,882
|
|
|
17,683
|
Deferred income
taxes
|
|
11,993
|
|
|
6,849
|
|
|
21,538
|
|
|
14,565
|
Other
adjustments
|
|
(145)
|
|
|
(43)
|
|
|
(115)
|
|
|
(147)
|
Changes in certain
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
(163,465)
|
|
|
(3,746)
|
|
|
(282,283)
|
|
|
(157,110)
|
Inventories
|
|
(90,312)
|
|
|
(57,622)
|
|
|
(171,023)
|
|
|
(144,441)
|
Other assets
|
|
(630)
|
|
|
5,420
|
|
|
(735)
|
|
|
7,514
|
Accounts payable
|
|
48,919
|
|
|
(45,445)
|
|
|
115,251
|
|
|
88,364
|
Income taxes receivable/payable
|
|
22,579
|
|
|
(77,587)
|
|
|
86,541
|
|
|
18,732
|
Accrued expenses
|
|
47,361
|
|
|
20,056
|
|
|
(29,390)
|
|
|
(24,191)
|
Net cash provided by
operating activities
|
|
326,033
|
|
|
81,010
|
|
|
503,968
|
|
|
321,440
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
(55,203)
|
|
|
(43,274)
|
|
|
(105,809)
|
|
|
(84,951)
|
Purchases of short term investments
|
|
(50,000)
|
|
|
-
|
|
|
(90,000)
|
|
|
-
|
Acquisition of businesses, net of cash acquired
|
|
(396,409)
|
|
|
-
|
|
|
(396,409)
|
|
|
-
|
Other
investing activities
|
|
657
|
|
|
2,387
|
|
|
886
|
|
|
29,305
|
Net cash used in
investing activities
|
|
(500,955)
|
|
|
(40,887)
|
|
|
(591,332)
|
|
|
(55,646)
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Issuance
of current and long-term debt
|
|
124,571
|
|
|
51,233
|
|
|
217,629
|
|
|
51,233
|
Repayment of current and long-term debt
|
|
(118,089)
|
|
|
(34,997)
|
|
|
(231,123)
|
|
|
(36,426)
|
Dividends paid
|
|
(44,268)
|
|
|
(37,527)
|
|
|
(81,065)
|
|
|
(71,657)
|
Purchase
of treasury stock
|
|
(49,145)
|
|
|
(76,813)
|
|
|
(118,414)
|
|
|
(138,069)
|
Other
financing activities
|
|
(3,144)
|
|
|
-
|
|
|
(8,324)
|
|
|
(3,532)
|
Net cash used in
financing activities
|
|
(90,075)
|
|
|
(98,104)
|
|
|
(221,297)
|
|
|
(198,451)
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease)
in cash, cash equivalents, and restricted cash
|
|
(264,997)
|
|
|
(57,981)
|
|
|
(308,661)
|
|
|
67,343
|
Cash, cash
equivalents, and restricted cash at beginning of period
|
|
991,421
|
|
|
973,429
|
|
|
1,035,085
|
|
|
848,105
|
Cash, cash equivalents, and restricted cash at end of
period
|
$
|
726,424
|
|
$
|
915,448
|
|
$
|
726,424
|
|
$
|
915,448
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure
information:
|
|
|
|
|
|
|
|
|
|
|
|
Cash
paid for interest
|
$
|
53,226
|
|
$
|
53,976
|
|
$
|
61,855
|
|
$
|
66,625
|
Cash
paid (received) for income taxes, net
|
$
|
79,995
|
|
$
|
152,116
|
|
$
|
78,950
|
|
$
|
153,670
|
Steel Dynamics, Inc.
SUPPLEMENTAL INFORMATION
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter
|
|
|
Year to Date
|
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
1Q 2018
|
External Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
|
|
$
|
2,325,426
|
|
$
|
1,758,242
|
|
$
|
4,247,216
|
|
$
|
3,479,575
|
|
$
|
1,921,790
|
Fabrication
|
|
|
217,439
|
|
|
197,866
|
|
|
418,931
|
|
|
391,962
|
|
|
201,492
|
Metals
Recycling
|
|
|
424,704
|
|
|
343,529
|
|
|
812,826
|
|
|
707,365
|
|
|
388,122
|
Other
|
|
|
122,956
|
|
|
91,083
|
|
|
215,427
|
|
|
180,034
|
|
|
92,471
|
Consolidated
|
$
|
3,090,525
|
|
$
|
2,390,720
|
|
$
|
5,694,400
|
|
$
|
4,758,936
|
|
$
|
2,603,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
|
|
$
|
537,192
|
|
$
|
273,818
|
|
$
|
875,549
|
|
$
|
626,241
|
|
$
|
338,357
|
Fabrication
|
|
|
14,185
|
|
|
20,188
|
|
|
34,017
|
|
|
43,955
|
|
|
19,832
|
Metals
Recycling
|
|
|
25,728
|
|
|
19,988
|
|
|
53,533
|
|
|
41,329
|
|
|
27,805
|
Operations
|
|
577,105
|
|
|
313,994
|
|
|
963,099
|
|
|
711,525
|
|
|
385,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash Amortization
of Intangible Assets
|
|
|
(6,829)
|
|
|
(7,424)
|
|
|
(13,755)
|
|
|
(14,848)
|
|
|
(6,926)
|
Profit Sharing
Expense
|
|
|
(42,335)
|
|
|
(21,308)
|
|
|
(68,997)
|
|
|
(48,539)
|
|
|
(26,662)
|
Non-segment
Operations
|
|
|
(26,054)
|
|
|
(19,909)
|
|
|
(55,063)
|
|
|
(48,219)
|
|
|
(29,009)
|
Consolidated
Operating Income
|
$
|
501,887
|
|
$
|
265,353
|
|
$
|
825,284
|
|
$
|
599,919
|
|
$
|
323,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before
Taxes
|
|
$
|
475,410
|
|
$
|
235,319
|
|
$
|
771,374
|
|
$
|
539,571
|
|
$
|
295,964
|
Net Interest
Expense
|
|
|
25,928
|
|
|
31,629
|
|
|
53,410
|
|
|
63,962
|
|
|
27,482
|
Depreciation
|
|
|
70,871
|
|
|
65,014
|
|
|
138,694
|
|
|
131,283
|
|
|
67,823
|
Amortization of
Intangible Assets
|
|
|
6,829
|
|
|
7,424
|
|
|
13,755
|
|
|
14,848
|
|
|
6,926
|
Non-controlling
Interest
|
|
|
(124)
|
|
|
985
|
|
|
1,953
|
|
|
3,137
|
|
|
2,077
|
EBITDA
|
|
578,914
|
|
|
340,371
|
|
|
979,186
|
|
|
752,801
|
|
|
400,272
|
Non-cash
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized Hedging (Gain) Loss
|
|
|
2,836
|
|
|
724
|
|
|
(7,120)
|
|
|
87
|
|
|
(9,956)
|
Inventory Valuation
|
|
265
|
|
|
2,359
|
|
|
465
|
|
|
2,521
|
|
|
200
|
Equity-based Compensation
|
|
|
8,375
|
|
|
6,975
|
|
|
17,955
|
|
|
16,049
|
|
|
9,580
|
Adjusted
EBITDA
|
$
|
590,390
|
|
$
|
350,429
|
|
$
|
990,486
|
|
|
771,458
|
|
$
|
400,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operating Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average External Sales
Price (Per ton)
|
|
$
|
932
|
|
$
|
779
|
|
$
|
879
|
|
$
|
761
|
|
$
|
822
|
Average Ferrous Cost
(Per ton melted)
|
|
$
|
348
|
|
$
|
303
|
|
$
|
334
|
|
$
|
283
|
|
$
|
321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flat Roll
Shipments
|
|
|
1,823,801
|
|
|
1,737,404
|
|
|
3,567,377
|
|
|
3,473,358
|
|
|
1,743,576
|
Long Product
Shipments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Structural and Rail Division
|
|
|
441,019
|
|
|
311,421
|
|
|
809,802
|
|
|
661,976
|
|
|
368,783
|
Engineered Bar Products Division
|
|
|
250,092
|
|
|
180,787
|
|
|
465,242
|
|
|
372,927
|
|
|
215,150
|
Roanoke Bar Division
|
|
|
140,143
|
|
|
116,231
|
|
|
263,546
|
|
|
242,100
|
|
|
123,403
|
Steel of West Virginia
|
|
|
78,881
|
|
|
76,054
|
|
|
162,613
|
|
|
153,283
|
|
|
83,732
|
Total Shipments
(Tons)
|
|
2,733,936
|
|
|
2,421,897
|
|
|
5,268,580
|
|
|
4,903,644
|
|
|
2,534,644
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External Shipments
(Tons)
|
|
2,480,223
|
|
|
2,246,569
|
|
|
4,807,738
|
|
|
4,551,649
|
|
|
2,327,515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Production (Tons)
|
|
2,768,512
|
|
|
2,476,159
|
|
|
5,369,712
|
|
|
5,020,241
|
|
|
2,601,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metals
Recycling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Nonferrous
Shipments (000's of pounds)
|
|
304,034
|
|
|
270,444
|
|
|
575,662
|
|
|
554,047
|
|
|
271,628
|
Total Ferrous
Shipments (Gross tons)
|
|
|
1,347,016
|
|
|
1,222,777
|
|
|
2,603,915
|
|
|
2,561,376
|
|
|
1,256,899
|
External Ferrous
Shipments (Gross tons)
|
|
466,125
|
|
|
466,506
|
|
|
903,115
|
|
|
951,920
|
|
|
436,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fabrication
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average External Sales
Price (Per ton)
|
|
$
|
1,380
|
|
$
|
1,311
|
|
$
|
1,363
|
|
$
|
1,301
|
|
$
|
1,345
|
Total
Shipments (Tons)
|
|
|
157,902
|
|
|
151,052
|
|
|
307,828
|
|
|
301,454
|
|
|
149,926
|
View original
content:http://www.prnewswire.com/news-releases/steel-dynamics-reports-record-second-quarter-2018-financial-results-300685047.html
SOURCE Steel Dynamics, Inc.